Inflation Jumps to 3-Year High as Critics Say Trump Economic Promises Have Turned to Dust
Common Dreams • • business
Key Points:
- The US personal consumption expenditures (PCE) index rose 3.8% annually in April, marking the fastest inflation pace since May 2023, with core inflation (excluding food and energy) at 3.3%, the highest since November 2023.
- Rising prices for gas, food, housing, and utilities are squeezing American families, with the personal savings rate dropping to 2.6%, its lowest since June 2022, as households spend more on basic necessities.
- Consumer spending increased by $111.1 billion in April, largely driven by higher gasoline and energy costs, despite consumer sentiment remaining very low.
- Critics blame President Donald Trump's tariffs and the ongoing conflict with Iran for driving up prices, particularly at the pump and in grocery stores, while accusing him of prioritizing personal projects over economic relief for families.
- Lawmakers and economists highlight that Trump's economic policies are exacerbating inflation pressures, making life harder for working Americans amid stagnant wage growth.